What is RESOURCE CURSE? What does RESOURCE CURSE mean? RESOURCE CURSE meaning - RESOURCE CURSE definition - RESOURCE CURSE explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources, specifically non-renewable resources like minerals and fuels, tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources. This is hypothesized to happen for many different reasons, and there are many academic debates about when and why it occurs. Most experts believe the resource curse is not universal or inevitable, but affects certain types of countries or regions under certain conditions.
The idea that resources might be more of an economic curse than a blessing began to emerge in debates in the 1950s and 1960s about the economic problems of low and middle-income countries. The term resource curse was first used by Richard Auty in 1993 to describe how countries rich in mineral resources were unable to use that wealth to boost their economies and how, counter-intuitively, these countries had lower economic growth than countries without an abundance of natural resources. An influential study by Jeffrey Sachs and Andrew Warner found a strong correlation between natural resource abundance and poor economic growth. Hundreds of studies have now evaluated the effects of resource wealth on a wide range of economic outcomes, and offered many explanations for how, why, and when a resource curse is likely to occur. While "the lottery analogy has value but also has shortcomings", many observers have likened the resource curse to the difficulties that befall lottery winners who struggle to manage the complex side-effects of newfound wealth.
The IMF classifies 51 countries as “resource-rich.” These are countries which derive at least 20% of exports or 20% of fiscal revenue from nonrenewable natural resources. 29 of these countries are low- and lower-middle-income. Common characteristics of these 29 countries include (i) extreme dependence on resource wealth for fiscal revenues, export sales, or both; (ii) low saving rates; (iii) poor growth performance; and (iv) highly volatile resource revenues.
A 2016 meta-study finds weak support for the thesis that resource richness adversely affects long-term economic growth. The authors note that "approximately 40% of empirical papers finding a negative effect, 40% finding no effect, and 20% finding a positive effect" but "overall support for the resource curse hypothesis is weak when potential publication bias and method heterogeneity are taken into account."
Natural resources are a source of economic rent which can generate large revenues for those controlling them even in the absence of political stability and wider economic growth. Their existence is a potential source of conflict between factions fighting for a share of the revenue, which may take the form of armed separatist conflicts in regions where the resources are produced or internal conflict between different government ministries or departments for access to budgetary allocations. This tends to erode governments' abilities to function effectively.
Even when politically stable, countries whose economies are dominated by resource extraction industries tend to be less democratic and more corrupt.
According to one academic study, a country that is otherwise typical but has primary commodity exports around 5% of GDP has a 6% risk of conflict, but when exports are 25% of GDP the chance of conflict rises to 33%. "Ethno-political groups are more likely to resort to rebellion rather than using nonviolent means or becoming terrorists when representing regions rich in oil."
There are several factors behind the relationship between natural resources and armed conflicts. Resource wealth may increase the vulnerability of countries to conflicts by undermining the quality of governance and economic performance (the "resource curse" argument). Secondly, conflicts can occur over the control and exploitation of resources and the allocation of their revenues (the "resource war" argument). Thirdly, access to resource revenues by belligerents can prolong conflicts (the "conflict resource" argument).
Intelligently assess unstructured content to drive compliance, records management, eDiscovery and targeted migration initiatives.
Secure File Sharing Basics.
Learn the basic cloud features any vendor should have, as well as basic and advanced security measures, before choosing a provider.
The Perils of Email Attachments.
Explore the dangers of sending sensitive business content via email attachments and how it compromises security.
Leveraging the Power of Collaboration.
Discover how Box amplifies Office 365 to make content inside and outside your business more collaborative, mobile and secure.
Learn how companies today are leveraging Box and Office 365 to collaborate securely and seamlessly across their organization.
How to Address Shadow IT in the Enterprise.
Find out how Box addresses Shadow IT in the enterprise without placing blame on your employees.
Bring Your Own Encryption.
Learn about customer-managed encryption, and why businesses should stay in control of their encrypted content in the cloud.
Securing Business Information in the Cloud.
Explore how a new generation of secure, enterprise cloud services mitigates security risks by centralizing documents in one platform.
Design Thinking and Enterprise Security.
How to Protect Content in the Age of Distributed Computing.
Adapting security controls to protect sensitive content has proven difficult in the mobile workplace. Learn how you can secure your content and prevent data loss.
Bridging The Cloud Encryption Gap.
Learn how you can bridge the cloud encryption gap with customer-managed encryption keys.
10 Lessons from Tech Leaders on Digital Transformation.
4 Ways to Build Better Apps with Secure Content Services.
5 Counterintuitive Mistakes Made by Companies Going Digital.
Learn how to make the right decisions upfront while building your digital business.
Explore the four key points you should consider when deciding between cloud versus hybrid for your business.
The Future of Security.